Lloyd’s is planning to mandate the use of electronic placement as it seeks to increase efficiency and reduce costs.
In a statement, Lloyd’s CEO Inga Beale said that adoption of the market’s electronic placing platform (PPL) is “vital” but “it is not happening fast enough”.
"Unless the market moves together it will not reap the benefits and reduce administration costs. Electronic placement will support face-to-face negotiation, further increase efficiency in the market, reduce back-office costs and most importantly, improve customer service," she said.
“Without higher levels of adoption throughout the market we put our investment to date at risk and we are in danger of seeing administration costs rise even higher. It is for this reason that Lloyd’s is proposing to mandate the use of electronic placement on a phased basis over time,” she added.
Beale highlighted that over 15,000 risks have now been bound to date on PPL, adding that nearly 60 percent of financial and professional lines risks are being placed electronically.
Last week, it was announced that PPL had been used to close the Aon Client Treaty facility for 2018, which is said to be one of the largest and most complex transactions in the Lloyd’s market.
PPL began trading in July 2016 and is a core component of the London Market Target Operating Model.
Lloyd’s said it will hold briefing sessions with the market to provide further information about PPL as well as details of how the electronic placement mandate may work and gather their input.